Spanish telecommunications provider Masmovil, the country’s fourth largest network operator, has announced a bid to take over rival firm Euskaltel for around EUR 2 billion. In a statement to market regulator CNMV, Masmovil said shareholders holding 52.32 percent of Euskaltel’s capital have already agreed to the terms of the friendly takeover at a price of EUR 11.17 per share in cash, a premium of 26.8 percent on the weighted average price of the shares over the past 6 months. The offer was conditional on securing at least 75 percent plus one share of the capital as well as competition and regulatory approval, it said.
If successful, the takeover would “strengthen the position of Masmovil as the operator with the highest growth in the Spanish telecommunications market," added the company. It would be the firm's second major corporate transaction since its takeover by the Lorca Telecom consortium of buyout funds KKR, Cinven and Providence for EUR 3 billion last summer. In December Masmovil acquired regional operator Ahi+ for around EUR 115 million and there have been strong rumours of a possible merger with Vodafone Spain.
Masmovil had around 9.5 million mobile customers and 2 million fixed line customers at the end of last year, while Euskaltel had a total of over 800,000 customers and almost 3 million RGUs. The operator is still mainly present in the Basque Country, Galicia, Asturias and Cantabria via its Euskaltel, R and Telecable brands but last summer begun its expansion into the rest of the country under the new 'Virgin Telco' brand.
In a statement, Euskaltel confirmed that its board had agreed to collaborate with Masmovil by providing “reasonably needed support” to complete the takeover and prepare documentation to obtain regulatory clearance. Business daily Expansion reported that Masmovil had already secured the support of Euskaltel’s three main shareholders – Zegona, Kutzabank and Alba – which together account for over 52 percent of the operator’s capital.
